CAT US - Guides FY17 R$38B v $38.1Be, sees FY17 EPS $3.25 consensus ex restructuring as too optimistic considering expected headwinds (Zack's FY17 consensus estimates is $3.36e) - investor presentation
- $38B is a reasonable midpoint expectation. In our view, $3.25 on $38B of revenues is too optimistic considering expected headwinds
- at $38B, sales are about $1B lower than the 2016 outlook
- that's a variable margin headwind of $350-450M
- net of headwinds and tailwinds, we remain committed to decrementals of 25-30% ex restructuring costs